The Reserve Bank of India (RBI) placed in public domain a draft scheme of reconstruction for Yes Bank on Friday, a day after it superseded the board of troubled private sector lender with immediate effect.
At the same time, the central bank said State Bank of India has expressed its willingness to make investment in Yes Bank and participate in its reconstruction scheme.
The draft plan proposes that the investor bank will invest in the reconstructed bank for up to 49 per cent stake.
The investor bank shall agree to invest in the equity of reconstructed Yes Bank to the extent that post infusion, it holds 49% shareholding in the reconstructed bank at a price not less than ₹10 (face value of ₹2) and premium of ₹8. According to RBI, SBI has expressed willingness to invest in Yes Bank.
The draft Yes Bank Ltd. reconstruction scheme of 2020 states that the bank will have a enhanced equity capital of 2,400 crore shares (of ₹2 each aggregating to ₹4,800 crore) and that State Bank of India Ltd will purchase a 49% stake in the bank. Besides, the acquisition price will be not less than ₹10 per share.
This means that SBI will pay about ₹11,760 crore for the stake purchase.
Existing shareholders own 255 crore shares, and they will end up with a roughly 11% stake in the company. The balance 40% stake will presumably be held by other institutions and investors, who will need to infuse roughly ₹9,600 crore, assuming the acquisition price is ₹10 per share.
News reports on Thursday said five large private banks will participate in the recapitalisation of Yes Bank.